Breadcrubs

Do I need a tax attorney to resolve my IRS back taxes?

If the IRS is coming after you for your tax debt you may be wondering if you need to hire a tax attorney to resolve your tax problem. The answer is no; you have options. Keep reading to find out more.

Given the complexity of tax regulations and the fact that the tax code is always changing, several different tax-related professions have made their way into the industry. It’s important to choose the right tax professional so that you can save money and get the best outcome for your tax debt problem.

Having tax debt is stressful enough on its own, but dealing with the IRS is even worse. It can be terrifying and frustrating. Just as you wouldn't attempt to perform surgery on yourself, you should not try to handle your tax debt on your own if the IRS is coming after you.

Today we’ll be talking about your options for representation and which one will help find the tax solution that is most suitable for your situation.

What’s a tax attorney?

A tax attorney assists clients in navigating the complex federal, state, and municipal tax laws. You might require the services of a tax attorney to handle problems like disagreements with tax authorities, tax debt, estate planning, or business planning.

Tax attorneys are experts in the specifics of the IRS tax code. In particular, they offer guidance on complex legal matters including trusts, estate planning, tax disputes, and company tax legislation. Lawyers are skilled negotiators who weigh case facts against the law and create cases that best support a desired outcome. They can utilize the legal system to their advantage in order to resolve tax disputes.

A tax attorney may assist with tax return preparation, but they are not accountants and almost never handle IRS tax filing. Tax attorneys sometimes lack the skills of accountants when it comes to optimizing deductions and making long-term plans for tax years.

You may require the services of a tax attorney for the following reasons:

  • You're planning to launch a business and need legal advice on your company's structure and tax treatment.
  • You are involved in international trade and require assistance with contracts, taxation, and other legal issues.
  • Your intention is to sue the IRS.
  • The IRS has opened a criminal investigation against you.
  • You need the protection of the attorney-client privilege because you committed a tax felony.

Tax attorneys uphold the attorney-client privilege, which means they cannot be compelled to provide information to other parties or speak against you. A tax attorney is a good choice if your tax issue is likely to end up in tax court or if you were accused of a crime linked to taxes.

What’s an enrolled agent?

Enrolled agents are the only tax professionals who are licensed directly by the IRS and the US Treasury. This means the IRS issues the title of enrolled agent (EA).

They are experts in tax issues and are certified after completing a thorough exam that covers every facet of the tax law or by working for the IRS for five years in a position that routinely interpreted and applied the tax code and its rules. Enrolled agents represent taxpayers throughout audit investigations, IRS collections, offers in compromise, and penalty reductions. An enrolled agent is a suitable alternative if you are subject to an audit but don't think you committed a tax crime or if you failed to file the proper documents.

Tax attorney vs enrolled agent

These experts are qualified to represent both people and companies before the IRS. The key differentiator is that enrolled agents’ designation is limited to tax problems.

While enrolled agents exclusively practice in areas specifically linked to taxes, attorneys have the ability to work in a very wide range of businesses, including those relating to tax difficulties. The attorney-client privilege is another distinction between an attorney and an enrolled agent. This privilege protects any information you provide with your counsel. Not all information disclosed to an EA is confidential if that person is required to testify against you. A tax legislation does provide some protection for information communicated with an EA, but it is not as comprehensive as the attorney-client privilege.

Understanding the contrasts between a tax attorney and other tax experts, such as enrolled agents, is important in helping you choose the right expert for your tax problem. To help you better understand both we’ve provided the similarities and differences below.

Similarities

Both tax lawyers and enrolled agents are granted unlimited legal counsel before the IRS. This enables them to represent both people and corporations in any tax dispute with the IRS and clients that do not include criminal activity. Both tax attorneys and enrolled agents must register with the IRS in order to practice before the IRS, and either one may lose that right if they don't abide by the rules. Failure to warn clients who are in violation of tax rules, conviction for any felony involving dishonesty, and verbally abusing IRS agents are all violations.

Differences

There are no minimal educational qualifications for enrolled agents, although tax attorneys often need to complete law school and pass a state bar test. The IRS mandates that enrolled agents complete at minimum 72 hours of continuing education credits every three years. This is for the purpose of keeping their understanding of current tax laws and concerns up to date.

Although some states require lawyers to finish continuing education programs to keep their licenses, the IRS does not impose this obligation on lawyers who focus on tax law. Attorney-client confidentiality is permitted in criminal situations, but for enrolled agents and their clients, the IRS only permits secrecy in non-criminal proceedings.

Which one should I choose?

Unless you’re dealing with criminal tax issues we recommend choosing an enrolled agent to represent you. Enrolled agents specialize in helping people who owe money to the IRS or State. Another reason is that Enrolled Agents typically bill by the hour at a lower rate than an attorney.

Hire an enrolled agent- it’s the smart thing to do!

The IRS is ruthless when it comes to taking what they think you owe them. Protect your assets and hire a professional to represent you. An enrolled agent is your best friend if you have over $10,000 of tax debt and need protection from the IRS.

Looking for the right EA to represent you? Tax Debt Resolution has a team of competent enrolled agents who can assist you in a variety of tax issues like back tax problems, wage garnishments, tax liens, and more. Call Tax Debt Resolution at 844-484-7444 to find relief from tax debt and end your tax problems for good.

Custom Tax Relief Services That Meet Your Specific Needs. What are you waiting for? Call Tax Debt Resolutions LLC and experience relief right away!